Soltec Power (SOL) Q2 2024 earnings summary

Executive summary

• Consolidated revenues reached €236.5M in H1 2024, up 28% year-over-year, driven by a strategic focus on solar tracker supply and higher project execution.

• Net loss widened to €126M, mainly due to asset impairments, construction business losses, and non-cash adjustments.

• Strategic shift underway to focus on core tracker business, discontinuing capital-intensive and low-margin activities like EPC, construction, and asset management.

• New management team appointed in mid-2024 to drive transformation, transparency, and operational efficiency.

• Transformation plan includes over 45 actions targeting profitability, cost optimization, and cash generation.

Financial highlights

• Consolidated H1 2024 revenues were €236.5M, up 28% year-over-year.

• Adjusted EBITDA was negative €6.3M, improving from negative €10.2M in H1 2023.

• Net loss of €126M, including €38M in deferred tax asset write-downs and €62.8M in energy segment losses.

• Gross margin on sales was 28% (down from 37% in H1 2023).

• Net financial debt stood at €227.5M as of June 30, 2024.

Outlook and guidance

• Strategic plan centers on solar trackers, innovation, and operational efficiency for sustainable growth.

• Gradual exit from EPC, construction, and asset management to focus on scalable, profitable segments.

• Targeting growth in key markets: U.S., Spain, Italy, Brazil, and EMEA, with a focus on local content and partnerships.

• Ongoing financial restructuring, refinancing negotiations, and search for a strategic partner to reinforce stability.

• Business plan to be presented in coming months.